Saturday, October 16, 2010

The Gay Tax-there is so much more to it.

 My partner is currently on my insurance. This morning I was bitching about the 'Gay Tax' and she asked me what that was about. I linked an NPR article to my Facebook so she could read it.

One thing notably absent was the discussion of imputed income and how it relates to same sex couples and the companies they work for. (Please see the HRC discussion on this topic.)

My partner and I are both women. We are registered domestic partners in Washington State. I am lucky, because my company offers domestic partner benefits. When we obtained our registration, I was able to add her to my medical/pharmacy, vision and dental insurance.

The 'special rights' that I have obtained as a registered domestic partner is the fact that I pay her portion of the premiums on an after-tax basis. Married couples don't. The other 'special rights' I have obtained is the privilege of paying Federal Taxes on the Fair Market Value of the benefits my employer provides to my partner. For me, that means I pay taxes on $350 of imputed income, every month.  What I didn't realize is that my employer pays additional payroll taxes, too.

I wonder why the paperwork and additional payroll taxes haven't driven employers to revolt and support same-sex marriage, just on the basis of the bottom line.

Of course, my evaluation of the employer impact is likely over-simplified, but the impact on my family is immediate and severe.

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